New business awards of $6.6 billion for the quarter resulted in a half year increase of 13% above last year.

Revenue increased by 1% to $3.97 billion from $3.94 billion in the year-ago quarter.

In the quarter, the Company recorded two significant non-cash charges arising from the annual goodwill impairment analysis and the previously disclosed claims settlement, resulting in an EPS of ($18.56).

The goodwill impairment charge arose from the Company’s annual test and the charge taken in the quarter was $2.69 billion, equivalent to ($18.21) EPS.

On August 24, 2011, the Company announced that it had reached an agreement in principle with the U.S. Government in a dispute of contract claims. The settlement was finalized in September resulting in a contract extension of approximately $1 billion and required the Company to record a non-cash, pre-tax charge of $269 million which reduced EPS by $1.20.

Integration of the recently completed acquisition of iSOFT, including the conversion from IFRS to GAAP, reduced EPS by $0.09.

Excluding the impact of the two non cash charges and the iSOFT integration, pro forma EPS from continuing operations was $0.94 compared to as reported EPS of $1.05 for the previous year.

Pre-tax margin was -72.0% compared with 6.23% from the previous year.

Operating income margin was -1.89% which included the adverse impact of the U.S. Government settlement and the recently completed iSOFT acquisition. On a pro forma basis, operating income margin was 5.56% which compares to 7.75% for the prior year.

The Company’s cash position was impacted by the previously announced approximately $265 million refund of advanced payments to the NHS. Free cash flow for the quarter was negative $268 million, compared to last year’s free cash flow of $178 million. The cash payment of $277 million arising from the settlement with the U.S. Government was received in October and is therefore not reflected in the Company’s second quarter financial results.

New Business Awards

Across the three lines of business, new business awards for the second quarter were $6.6 billion. North American Public Sector (NPS) contributed $3.1 billion, MSS reported $2.6 billion, and Business Solutions & Services closed $0.9 billion of new business.

On a year-to-date basis, new business awards were approximately $8.9 billion compared to $7.9 billion in the previous year.

Revenue by Line of Business

For the quarter, revenue from BSS was $0.95 billion (an increase of 8.7% from the second quarter last year and 2.4% in constant currency). NPS revenue was $1.44 billion (down 4.8% from the second quarter last year and down 2.1% when adjusted for the settlement of disputed claims with the U.S. Government). MSS revenue was $1.62 billion (an increase of 2.4% from the second quarter of last year and a decline of 2.8% in constant currency).

Business Commentary

“The first half total bookings of $8.9 billion is encouraging and reflects the investment we have made in our sales organization,” said Michael W. Laphen, CSC Chairman, President and Chief Executive Officer. “I am encouraged with the direction of our commercial revenue in the quarter and although the NPS business continues to be impacted by the Federal budget uncertainty, I am comfortable with our relative position in this market. With respect to the bottom line, MSS is a turnaround story and as previously announced we have made several organization and process changes aimed at accelerating improvements. As stated above, we have taken a non-cash goodwill impairment charge resulting from our annual test which is normally conducted in our second quarter. In our estimation, a key contributor to this charge is the fact that our stock price has been under pressure of late as the result of several business and market uncertainties. During the quarter our equitable settlement with the US government was finalized, resulting in a $1 billion incremental contract value, a cash payment to the Company of $277 million and a non-cash pre-tax charge of $269 million.”

Fiscal Year 2012 Updated Guidance

August 10, 2011

November 9, 2011

New Business Awards (billions)

~$17

~$17

Revenue (billions)

$16.5 - $17.0

$16.5 - $16.7

Operating Income Margin

7.00% - 7.50%

~6% pro forma*

EPS

$4.70 - $4.80

$4.05 - $4.10 pro forma*

Free Cash Flow as a % of Net Income

> 90%

> 90% pro forma*

* excluding the claims settlement and the goodwill impairment charge

Conference Call and Webcast

CSC senior management will host a conference call and Webcast at 11:00 a.m. EST today. The conference call dial-in number for domestic callers is 877-681-3370. International callers will need to dial +1 719-457-1517. The pass code for all participants is 2693468. The Webcast and presentation slides can be accessed at www.csc.com/investor_relations.

Non-GAAP Measures

In an effort to provide investors with additional information regarding the Company’s preliminary results as determined by generally accepted accounting principles (GAAP), the Company has also disclosed in this press release preliminary non-GAAP information which management believes provides useful information to investors, including: pro forma data, operating income, operating margin, free cash flow and free cash flow as a percentage of net income attributable to CSC common shareholders. A reconciliation of the adjustments to preliminary GAAP results for this quarter, twelve months and prior periods, as well as the rationale for management’s use of non-GAAP measures, is included in the tables below.

About CSC

CSC is a global leader in providing technology-enabled business solutions and services. Headquartered in Falls Church, Va., CSC has approximately 97,000 employees and reported revenue of $16.2 billion for the 12 months ended September 30, 2011. For more information, visit the company's website at www.csc.com.

All statements in this press release and in all future press releases that do not directly and exclusively relate to historical facts constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent the Company’s intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors, many of which are outside the Company’s control. These factors could cause actual results to differ materially from such forward-looking statements. For a written description of these factors, see the section titled “Risk Factors” in CSC’s Form 10-K for the fiscal year ended April 1, 2011 and any updating information in subsequent SEC filings. The Company disclaims any intention or obligation to update these forward-looking statements whether as a result of subsequent event or otherwise, except as required by law.